2. Determine the amount of producer surplus generated in each of the following situations.a. David lists his talking Vin Scully Bobblehead on eBay. He sets a minimum acceptableprice, known as his reserve price, of $75. After five days of bidding, the final high bid iseхactly $75.b. Jade advertises her car for sale in the used-car section of the student newspaper for$2,000, but she is willing to sell the car for any price higher than $1,500. The best offershe gets is $1,200.c. Ryan likes his job so much as a Chief of Staff for Andrew Yang's Campaign that hewould be willing to do it for free. However, his annual salary is $80,000.

Meaning of Producer Behavior: The term producer behavior refers to the situation under which a…

Answered: 2. Determine the amount of producer…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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7. Producer surplus for an individual and a market Suppose the market for macaroons is perfectly competitive, so sellers take the market price as given. Musashi manages a bakery that offers. macaroons for sale. The following graph plots Musashi's weekly supply curve (orange line). Point A represents a point along his supply curve. The price of macaroons is $2.25 per macaroon, which is given by the black horizontal line. PRICE (Dollars per macaroon) 9.00 8.25 7.50 + 6.75 6.00 + 5.25 4.50 3.75 3.00 - 2.25 1.50 0.75 + 0 0 Price Supply Musashi's Weekly Supply 6, 1.5 * A 2 4 6 10 12 14 16 18 QUANTITY (Macaroons) 8 20 22 24 ? Using the previous graph, you can determine that Musashi is willing to supply his 6th weekly macaroon for $ macaroon, the producer surplus earned from supplying the 6th macaroon is $ Since he receives $2.25 per Suppose the price of macaroons were to rise to $3.00 per macaroon. At this higher price, Musashi would receive a producer surplus of $ from the 6th macaroon he…
10) Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect. Price P₁ 0 a C Q₁ b d Q₂ @ Quantity S D If actual production and consumption occur at Q₁ A) consumer surplus is maximized. C) missing surplus of e + d occurs. 10) B) missing surplus of b + d occurs. D) economic surplus is maximized.
demande 41. PRODUCERS' SURPLUS FOR MULTITASK DESK LAMPS Refer to Section 6.7. The manufacturer of a multitask desk lamp will make x thousand units of the lamps available in the market when the unit price is p = 50 + x√1 + x dollars. Find the producers' surplus if the price is set at $74/unit. Hint: Show that the corresponding quantity demanded is 8000 units.
If the inverse demand function for toasters is p= 120 - 0.5q, what is the consumer surplus if the price is 10? Consumer surplus (CS) is $- (Enter your response as an integer.) ост H étv MacBook Air 80 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 #3 2$ & 3 4 5 7 8 W R T Y U * CO < CO
Part 1 = Justin's inverse demand for a good is given by p is his gross consumer surplus if the per-unit price is p = 2.00? Part 2 What is Justin's consumer's surplus? 47.00-2.00q. Assuming that there are enough suppliers to meet his demand, what (Round to the nearest two decimals if necessary.) (Round to the nearest two decimals if necessary.)
A manufacturer of shirts sells the exact same shirt in two different colors: black and white. The cost of producing each shirt is the same. Black and white shirts are substitutes in production. If the selling price of the black shirt increases, the supply of white shirts will , and the supply curve of the white shirts will shift O decrease, left O decrease, right increase, right increase, left
Exercises for Chapter 7 1. Recall exercise 1 from Chapter 5 in which an increase in the toll on a highway from $.40 to $.50 would reduce use of the highway by 5,000 cars per week. Because of the reduced use of the highway, demand in the secondary market for subway rides increases. Assuming that the price of subway rides is set equal to the marginal cost of operating the subway and marginal costs are constant (i.c., the supply schedule is horizontal), and no externalities result from the reduced use of the highway and the increased use of the subway, are there additional costs or benefits due to the inereased demand for subway rides? Why or why not? a. Because of the reduced use of the highway, demand in the secondary market for gasoline falls by 20,000 gallons per year. There is a stiff tax on gasoline, one that existed prior to the new toll. Assuming that the marginal cost of producing gasoline is $1 per gallon, that these marginal costs are constant (i.c., the supply schedule is…
Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. PRICE (Dollars per headset) 400 360 320 280 240 200 160 120 80 40 0 0 Demand Supply 100 200 300 400 500 600 700 800 900 QUANTITY (Millions of headsets) Total surplus in this market is $ 1000 million. Equilibrium Δ Consumer Surplus Producer Surplus
If the actual economic surplus in the market represented by the graph is $1,575, what is the deadweight loss? Price $80 $5 $3,825 $2,925 $60 Actual quantity Marginal cost Marginal benefit $90 Quantity

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